BP plans share buyback to stave off takeover bids

The £4 billion share buyback could take place as early as next year. According to the paper, the huge buyback could take place as early as next year. Directors at the oil major are alert to the possibility of an opportunistic bid from a cash-rich rival and have had a defense document on standby for weeks.

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By SARAH KENT

LONDON -- BP is planning to spend up to 3.7 billion pounds
($5.9 billion) to buy its own stock in an attempt to revive its
flagging share price and stave off potential takeover attempts,
the Sunday Times reports.

According to the paper, the huge buyback could take place as
early as next year. Directors at the oil major are alert to the
possibility of an opportunistic bid from a cash-rich rival and
have had a defense document on standby for several weeks, the
UK newspaper adds.

BP raised the possibility of a share buyback in October
after the completion of its $26.8 billion deal to sell its
stake in Russian oil producer TNK-BP to Russian OAO
Rosneft.